Lean Supply Chain Management Essentials

Transcription

1 Lean Supply Chain Management Essentials A Framework for Materials Managers Bill Kerber and Brian J. Dreckshage Ltfi) CRC Press ^^ J Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an informa business A PRODUCTIVITY PRESS BOOK

2 Contents INTRODUCTION xiii CHAPTER 1 LEAN BASICS 1 Materials Management 1 Traditional Planning and Control Framework 2 Enterprise Resource Planning (ERP) 2 Problems with ERP in Make-to-Order Environments 4 What Is at Issue? 4 Five Lean Principles 6 Specify What Creates Value from the Customer's Perspective 7 Identify All Steps across the Whole Value Stream 7 Make Those Actions That Create Value Flow 7 Only Make What Is Pulled by the Customer Just in Time 7 Strive for Perfection by Continually Removing Successive Layers of Waste 7 Lean Focuses on Three Major Areas of Waste 9 House of Toyota Framework 9 House of Toyota: Operational Stability 10 House of Toyota: Just in Time. 11 House of Toypta: Jidoka 12 House of Toyota: Goals 12 House of Toyota: Improvement and Respect 13 Lean: Additional Considerations 14 A Toyota Leader's View of the Toyota Production System 15 Technical 16 Management 16 Philosophy/Basic Thinking ' 17 Planning and Control Hierarchy 17 Lean Planning and Control Chart, 18 Leveling Production 20 Pull Systems 21 Flow 21 Interval as Lot Size 22 VII

3 VIII CONTENTS CHAPTER 2 CHAPTER 3 EXECUTIVE S&OP, FORECASTING, AND CUSTOMER RELATIONSHIPS Executive Sales and Operations Planning Role of Executive S&OP in Lean Lean Manufacturing Executive S&OP What Is Executive S&OP? Executive S&OP Focus Executive S&OP Process Product Families Aligning Families and Resources Takt Time and Executive S&OP What Does Takt Time Do? Forecasting Forecasting Perspective Forecasting Basics Demand Patterns Dependent vs. Independent Demand What Should Be Forecast? General Methods of Forecasting Qualitative Techniques Quantitative Techniques Extrinsic Techniques Pyramid Forecasting Forecasting as a Process Ways to a Better Forecast An Alternative to Forecasting: Supplier Partnerships Developing Suppliers as Partners Partners vs. Vendors LEVELING AND HEIJUNKA Leveling Value Streams Mix and Volume Variability Definitions Buffer with Finished Goods Inventory (a la TPS): Make to Stock Stock Amount.;, Bill of Materials Shape Helps Dictate Strategy How Lean Fits In: Make to Stock Leveling Production Mix vs. Sales Mix: Heijunka Scheduling Leveling Mix Leveling Mix in a High-Product-Mix Environment Buffer Demand Variability with Lead Time (Backlog): Make to Order BOM Shape How Lean Fits In Managing Backlog Chase Takt Time and Chase, - Hybrid BOM Shape How Lean Fits In: Postponement MPS and Heijunka Master Production Schedule The Master Schedule '

4 CONTENTS IX Heijunka 59 Work Like the Tortoise, Not the Hare 59 Concluding Observations 62 CHAPTER 4 DEPENDENT DEMAND MATERIALS 65 Benefits of Creating Flow 66 Batch Manufacturing 67 Lean Process Flow 67 Operator Balance Chart 69 Batch Flow 71 One-Piece Flow 72 First-in-First-Out Flow 73 Typical FIFO Lane Rules 74 Material Planning 74 Material Planning Horizons 74 Long-Term Planning 75 Short-Term Planning 76 Execution 81 Mix Issues 82 CHAPTER 5 CAPACITY MANAGEMENT AND SHOP FLOOR CONTROL 83 Issues with Traditional Capacity Planning 87 Capacity Planning in Lean 88 Value Stream Loops 89 Capacity and Pull 93 Standardized Work in Process 99 Shop Floor Control 100 Heijunka, Flow, and Visual Control as Shop Floor Control 102 Staffing and Takt Time 104 Operator Balance Chart 105 CHAPTER 6 INVENTORY MANAGEMENT 107 Traditional Inventory Management 108 The Importance of Inventory Management: Customer Satisfaction and Company Financials 108 Concepts of Traditional Inventory Management 109 Order Quantity 112 When to Order 112 Lean Inventory Management ' 114 Inventory as* Waste 114 Inventory Management in Lean 115 Visual Control 115 Approaches to Reducing Inventories 116 Supermarket Sizing as a Way to Reduce Inventory 117 Kanban Sizing 118 Constant Quantity, Nonconstant Cycle (Timing) 118 Constant Cycle, Nonconstant Quantity 118 Supermarket Sizing 119 WIP Inventory: FIFO Management 119 Reducing Pipeline Inventory: Kanban Visual Card 120 Inventory Reduction through Reducing Lot Sizes 121 Point of Sale Data 123

5 X CONTENTS CHAPTER 7 LOT SIZING 125 Lot Sizing in Lean 125 One Piece 125 Every Part Every Interval (EPEI) 126 Why Should We Strive for Smaller Intervals? 127 So How Do We Determine the Interval? 129 An Example: Murphy's Toys Trim Data 130 Interval and Capacity 132 Balancing Work (Operator Balance Charts) 132 Lot Sizing as Part of Scheduling 1 Applying the EPEI to Traditional Planning Systems: The Period Order Quantity 1 Mix Issues 134 Volume Variability 135 Mix Variability 135 Making Sense of High-Mix Value Streams 137 What Do We Gain by Increasing the Interval? 137 Interval as Goal Setting 139 High-Mix Interval 140 Determining the Interval 140 Interval in Value Stream Loops 141 CHAPTER 8 WAREHOUSING AND LOGISTICS 143 Traditional Physical Control of Inventories 143 Traditional Relationships 144 Packaging Readying an Item for Shipment 145 Overall Warehouse Setup and Item Locations 145 Traditional Logistics 145 Logistics Skill 146 Freight Cost 146 Distribution Requirements Planning 147 Lean Warehousing 148 Controlling Space 153 Controlling Labor 156 Lean Logistics 158 Inbound Logistics 159 Outbound Logistics 161 Zone Skipping 162 Packaging ' 162 Product Availability and Its Effect on Logistics 162 Collaboration 164 Visibility and Reliability 165 CHAPTER 9 QUALITY CONTROL 167 Lean Quality 168 Lean and Total Quality Management Visual Control 170 Poka-Yoke Methods and Examples 171 Lean and Quality Control Jidoka/Autonomation 171 Lean and Total Quality Control Management Companywide 172 TS Seven Lean Quality Tools 175

6 kj CONTENTS XI CHAPTER 10 CHAPTER 11 PURCHASING Developing a Systems Perspective for Purchasing Traditional Purchasing Lean Purchasing Keiretsu Lean Partnership Quality Supplier Quality Audits Cost Lean Purchasing and the "China Price" Delivery Improving Delivery and Flexibility by Reducing Lead Times and Lot Sizes Reducing Supplier Base Keeping Critical Items Internal Measuring Delivery Performance Supplier Scorecard Technological Capabilities Design and Development LEAN SYSTEM Summary and Conclusions APPENDIX 1: THE MYTH OF THE BELL-SHAPED CURVE: INVENTORY LEVEL AND CUSTOMER SERVICE APPENDIX 2: THE BULLWHIP EFFECT APPENDIX 3: LEAN IMPLEMENTATION METHODOLOGY APPENDIX 4: USING YOUR VALUE STREAM MAP FOR GREEN INITIATIVES AND RISK MANAGEMENT INDEX